Complex Relationship Between the Economy, Education and National Development: Investments and Challenges in Indonesia

Abstract

Education and the economy have a complex relationship and influence each other in the development of a country. A stable economy can provide better access to education for society, but high education costs can be an obstacle to achieving quality education. Investment in education is recognized as an important step for long-term economic growth, with a higher return than investment in physical capital. However, higher education in Indonesia is still faced with the challenge of high costs, while the free education offered by the government is often of low quality. This literature study aims to explore the relationship between the economy, education and national development. The analysis results show that a stable economy supports the development of quality education, while investment in education is considered an important long-term investment for economic growth. Economic factors such as socio-economic status also influence people's access to education. This research provides a deeper understanding of the importance of the relationship between the economy, education and national development, and highlights the need for policies that support investment in education to achieve sustainable economic growth.